Mid-sized Nigerian lender, Fidelity Bank Plc said it is looking at selling some commercial papers to raise money in order to increase its lending capacity.
Fidelity Bank is a smaller lender compared to its bigger rivals in Africa’s largest economy.
According to sources attributed to Reuters News, the commercial paper might be issued to boost lending depending on the yield and pricing it can fetch, a senior executive said on Wednesday.
Analysts expect the central bank this year to adopt a more dovish stance on interest rates as inflation falls, and see a cut in the coming months. Also, the government is shifting towards foreign borrowing to cut yields at home.
Reuters News quoted Fidelity Chief Operations and Information Officer Gbolahan Joshua, said Fidelity Bank could look to the local funding market this year after it raised a $400 million Eurobond in October to refinance existing debt and boost lending.